Workers’ compensation insurance is essentially an insurance policy for workers compensating work-related accidents, illnesses, and death. If an individual worker gets injured on the job and sues his employer through Worker’s Compensation, that employer can, at their own expense, file a suit against the employer to be paid for the medical expenses, lost wages, and pain and suffering. There are several types of workers’ comp plans. They include: general, specialty, and residual income. General workers’ comp plans pay for medical expenses and lost wages but do not compensate for lost employment. Specialty workers’ comp plans pay a percentage of the actual wages and pay for both lost wages and lost employment.
Residual income workers’ comp plans pay for income that would have been paid out under a regular workers compensation insurance policy. Specific industries may pay out more than regular workers’ compensation insurance because of special risk factors. For instance, certain industries tend to have higher incidence of injuries, such as construction. As well, some companies that operate heavier machines may be at a higher risk of incurring injury or fatality, which leads to the high cost of these types of insurance policies. One should also consider the fact that some fields don’t allow for worker’s compensation coverage, meaning there is no substitute for this type of insurance coverage.
If an individual worker has been injured on the job, the worker’s compensation benefits can be lost if the worker sues his employer. Workers’ compensation coverage is designed to help employees replace lost wages and medical costs if they have been injured on the job. However, when a business owner or representative sue an employee it may also cost them financially. The best way to protect their assets is to purchase workers’ compensation insurance policy.
Worker’s compensation insurance policies typically come in one of two forms: Filing a claim or settling with the employer. If the injured worker files a claim, the benefits will be distributed based on the “wear and tear” factor. Under no-fault coverage, the benefits are paid directly to the employee. In addition, under some types of insurance policy for workers comp, if the employee participates in a rehabilitation program and successfully completes it, the benefits can be awarded to him or her. Depending on which one a business chooses, these types of benefits can be taxable. Business Interruption Insurance
Business owners who do offer disability insurance can also offer short-term disability benefits to employees who have been injured on the job. In addition to providing short-term benefits, some businesses also offer long-term disability insurance. This type of insurance policy is similar to health and life insurance, but instead of providing coverage for a specific time period, long-term disability insurance offers coverage until the employee reaches the company’s defined benefit age.
In order to determine the best insurance coverage for your business, it’s important to do your research. Talk with different insurance companies and ask them about their products, their rates, and their requirements for filing a claim. As with any type of insurance policy, it’s a good idea to get at least three different quotes when shopping for commercial insurance policies. To find out more about finding the right insurance for your business, contact a commercial insurance broker today.